Title: MRP%20and%20ERP
1Chapter 15
2MRP
- Material requirements planning (MRP)
Computer-based information system for ordering
and scheduling of dependent demand inventories
3Dependant Demand
- Dependent demand Demand for items that are
subassemblies or component parts to be used in
production of finished goods.
4Dependent vs Independent Demand
5(No Transcript)
6MPR Inputs
- Master Production Schedule
- Time-phased plan specifying timing and quantity
of production for each end item. - Material Requirement Planning Process
Product Structure Tree
Lead Times
7Master Schedule
- Master schedule One of three primary inputs in
MRP states which end items are to be produced,
when these are needed, and in what quantities. - Cumulative lead time The sum of the lead times
that sequential phases of a process require, from
ordering of parts or raw materials to completion
of final assembly.
8Planning Horizon
Figure 14-4
9Bill-of-Materials
- Bill of materials One of the three primary
inputs of MRP a listing of all of the raw
materials, parts, subassemblies, and assemblies
needed to produce one unit of a product. - Product structure tree Visual depiction of the
requirements in a bill of materials, where all
components are listed by levels.
10Product Structure Tree
Figure 15-5
11MRP Processing
- Gross requirements
- Schedule receipts
- Projected on hand
- Net requirements
- Planned-order receipts
- Planned-order releases
12Typical MRP Matrix
13MRP Outputs
- Planned orders - schedule indicating the amount
and timing of future orders. - Order releases - Authorization for the execution
of planned orders. - Changes - revisions of due dates or order
quantities, or cancellations of orders.
14MRP Secondary Reports
- Performance-control reports
- Planning reports
- Exception reports
15Other Considerations
- Safety Stock
- Lot sizing
- Lot-for-lot ordering
- Economic order quantity
- Fixed-period ordering
- Part-period model
16MRP Planning
17MRP in Services
- Food catering service
- End item gt catered food
- Dependent demand gt ingredients for each recipe,
i.e. bill of materials - Hotel renovation
- Activities and materials exploded into
component parts
18Benefits of MRP
- Low levels of in-process inventories
- Ability to track material requirements
- Ability to evaluate capacity requirements
- Means of allocating production time
19Requirements of MRP
- Computer and necessary software
- Accurate and up-to-date
- Master schedules
- Bills of materials
- Inventory records
- Integrity of data
20MRP Problem 1
- Suppose you are to produce 100 units of product A
in period 8 with the product structure shown
below. If no stock is on hand or on order,
determine when to release orders for each
component and the size of each order. Product A
with a lead time of 4 periods is made from
components B and C with lead times of 3 and 2
periods, respectively C is made from components
D and E with a lead time of 1 period each.
21MRP Problem 1
A
B (1)
C (2)
D (1)
E (2)
22MRP Problem 1 - Solution
  Master Production
Schedule (MPS)
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23MRP Problem 1 - Solution (cont.)
- The following can be calculated in this problem
since there is zero available-on-hand for item A
and all of its components. - End Item A Requirements 100
- Component B Requirements 100
- Component C Requirements 200
- Component D Requirements 200
- Component E Requirements 400
24MRP Problem 1 Solution (cont.)
25MRP Problem 1 Solution (cont.)
26MRP Problem 1 Solution (cont.)
27MRP Problem 1 Solution (cont.)
28MRP Problem 1 Solution (cont.)
29MRP Problem 2
- In the MRP table below, indicate the available on
hand requirements, the planned order receipts,
and the planned order releases. The lead-time is
two periods. Available on hand are 20 units.
Consider a) the lot size is the same as the net
requirements Lot-For-Lot (LFL) or lot size 1
and b) lot size equals 15.
30MRP Problem 2
31MRP Problem 2 (a)- Solution
32MRP Problem 2 (a)- Solution
33MRP Problem 2 (a)- Solution
34MRP Problem 2 (a)- Solution
35MRP Problem 2 (a)- Solution
36MRP Problem 2 (a)- Solution
37MRP Problem 2 (a)- Solution
38MRP Problem 2 (a)- Solution
39MRP Problem 2 (a)- Solution
40MRP Problem 2 (a)- Solution
41MRP Problem 2 (b) - Solution
42MRP Problem 2 (b) - Solution
43MRP Problem 2 (b) - Solution
44MRP Problem 2 (b) - Solution
45MRP Problem 2 (b) - Solution
46MRP Problem 2 (b) - Solution
47MRP Problem 2 (b) - Solution
48MRP Problem 2 (b) - Solution
49MRP Problem 2 (b) - Solution
50MRP Problem 3
- A company produces two products Product A and
Product Q. The owner has received an order from
a customer of 103 units of product A for week 8
and 200 units of product Q for week 7. The
product structures and other pertinent
information are given below in the table as well
as on top of each MRP table. Develop a materials
requirements plan that will provide the customer
the two products.
51MRP Problem 3
52MRP Problem 3 - Solution
53MRP Problem 3 Solution (cont.)
54MRP Problem 3 Solution (cont.)
55MRP Problem 3 Solution (cont.)
56MRP Problem 3 Solution (cont.)
57MRP Problem 3 Solution (cont.)
58MRP Problem 3 Solution (cont.)
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60MRP Problem 3 Solution (cont.)
61MRP Problem 3 Solution (cont.)
62MRP Problem 3 Solution (cont.)
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64MRP Problem 3 Solution (cont.)
65MRP Problem 3 Solution (cont.)
66MRP Problem 3 Solution (cont.)
67MRP Problem 3 Solution (cont.)
68MRP Problem 3 Solution (cont.)
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70MRP Problem 3 Solution (cont.)
71MRP Problem 3 Solution (cont.)
72MRP Problem 3 Solution (cont.)
73MRP Problem 3 Solution (cont.)
74MRP Problem 3 Solution (cont.)
75MRP Problem 3 Solution (cont.)
76MRP II
- Expanded MRP with and emphasis placed on
integration - Financial planning
- Marketing
- Engineering
- Purchasing
- Manufacturing
77MRP II
78ERP
- Enterprise resource planning (ERP) An expanded
effort to integrate standardized record-keeping
that will permit information sharing throughout
the organization
79MRP II and ERP Systems
- Expanded MRP with and emphasis placed on
integration - Financial planning
- Marketing
- Engineering
- Purchasing
- Manufacturing
- Other Capabilities